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Jigsaw pieces being joined | AccountingWEB | Sumer CEO sheds light on acquisition strategy
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Sumer CEO sheds light on acquisition strategy

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Warren Mead, the chief executive of mid-market accountancy firm Sumer, explains why the firm’s growth plans don’t quite fall under the typical mergers and acquisitions umbrella.

26th Feb 2024
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The rapid expansion of mid-market accountancy firm Sumer has not followed the traditional mergers and acquisitions (M&A) route, chief executive Warren Mead has told AccountingWEB. Sumer’s growth has come from forming regional hubs throughout the UK, focused exclusively on the small or medium-sized enterprise (SME) market.

Mead spoke about the journey that has so far seen the firm take majority stakes in the likes of Monahans, RMT Accountants & Business Advisors, RT Marke & Co, Jerroms, Simmons Gainsford, Carpenter Box, Cowgills and EQ Accountants.

Something different

“It’s something different because it’s a co-ownership model,” he said. “What we do with our hubs is we take a majority stake but there’s a very significant minority stake left with the existing management teams.

“That gets expanded to other people in the organisation as well – the next generation of talent. So that in itself is quite unique. Most consolidation tends to take a 100% stake, possibly with some equity in the top company, but this is genuine equity.

“The partners in Monahans are still partners and co-owners in Monahans, the partners in Cowgills are still partners and co-owners of Cowgills – so we think that gives us the best of both worlds. It gives us that really local feel.”

When asked whether other firms may look at the same approach, Mead noted: “Imitation is the highest form of flattery, isn’t it?

“All I know is what works for us and it’s really working for us at the moment, as well as for our colleagues in the hub and, most importantly, for our clients.”

Filling the gaps

As for what comes next, Mead acknowledged that Sumer has “some gaps in our regional coverage”.

“I’d expect and hope that we’ll fill some more of those so that we’ve got a proper and complete national coverage. We’ll undoubtedly be much bigger but size is just an outcome of doing the right thing.

“I think the outcome will be this time next year. We’ll be a top 10 practice but I’m not obsessed by size – I’m obsessed by great client service and that’ll just be the outcome.

“So far, I can’t see that there’s anything that should really get in our way.”

Replies (1)

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Richard Sergeant
By Richard Sergeant
27th Feb 2024 09:41

This has been the TC Group model for many years. Perhaps they are the ones that should feel flattered?

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